Nestle Ditches Synthetic Colors in US Food Products as Trump Demands Cleaner Labels

Big Food bows to political pressure—and maybe common sense.

Nestle’s latest move isn’t just about rainbow-colored cereals. It’s a calculated pivot as regulatory winds shift. The Trump administration’s push for 'cleaner labels' forces even giants to adapt—or risk becoming aisle relics.

Behind the PR spin: A scramble to future-proof market share. Because nothing screams 'consumer-first' like waiting for a political nudge to remove questionable additives. Meanwhile, Wall Street yawns—another cost of doing business in the era of performative wellness.

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Nestle S.A. is a multinational conglomerate, best known for popular brands like Nescafe, Maggi, Milo, KitKat, and more.

Nestle Targets Cleaner Ingredients

Nestle stated that the transition will be completed within the next 12 months. The MOVE marks the final phase of the company’s decade-long effort to eliminate artificial colors from its portfolio, aligning with the growing consumer demand for natural ingredients.

The company also highlighted that over 90% of its current product categories already exclude synthetic colors. Over the years, the company has also expanded low- and no-sugar options, introduced nutrient-rich ingredients, and removed unfamiliar additives to meet evolving consumer preferences.

Trump Pushes for Cleaner US Food Supply

Nestle U.S.’s decision to eliminate synthetic food dyes by mid-2026 follows a broader industry shift driven by new health initiatives under the President TRUMP administration. In April, Health Secretary Robert F. Kennedy Jr. outlined a plan to remove artificial dyes from the food supply to combat health issues like ADHD, obesity, and diabetes. As part of the plan, the FDA has banned Red Dye No. 3, which is a synthetic coloring commonly found in cereals, candy, and cough syrups. The agency also aims to phase out eight additional artificial dyes, including Red 40 and Yellow 5, by the end of next year.

Furthermore, Nestlé joins major players like Conagra Brands (CAG), General Mills (GIS), and Kraft Heinz (KHC), all of which have announced similar timelines to phase out artificial colors across their U.S. product lines.

However, recreating products without synthetic dyes presents real challenges. Natural alternatives are more expensive, less shelf-stable, and can alter a product’s appearance or flavor. This shift could lead to higher production costs and pressure on profit margins in the NEAR term.

Is Nestle a Buy or Sell?

As Nestle refines its product portfolio, investors may want to take a closer look at its Swiss-listed shares. According to TipRanks, NESN stock has received a Hold consensus rating based on nine Holds, five Buys, and two Sells assigned in the last three months. The Nestle share price forecast of CHF86.61 implies a growth rate of over 8% from current levels.